CIO DNA: Complex Market Reality Breeds New Type of CIO; META Group Study Identifies Top CIO Concerns for 2005 METAmorphosis to Tackle CIO Agenda.

STAMFORD, Conn. -- The DNA of the CIO is evolving, according to META Group (Nasdaq: METG), a leading provider of information technology (IT) research, advisory services, and strategic consulting. The increased volatility of a new market reality in which cost-cutting is held at a premium has forever changed the position of the CIO. Moreover, the increasing complexity of the technology sector, which has seen the evolution of traditional software markets, consolidation of players and services, and blurring of deeply entrenched vendor channels, has vastly impacted the kind of executive needed to helm the IT organization (ITO).

"The DNA of the CIO is more multidimensional than it has ever been," said Jonathan Poe, senior vice president of Executive Directions, META Group's CIO advisory and coaching service. "In the past, CIO help-wanted ads were simple. Organizations sought executives with enough technology savvy to oversee IT investments and enough managerial ability to run the ITO. Today, leading CIOs must have the business acumen to manage the ITO as a separate and distinct division, while being creative enough to view IT as a transformational tool rather than a support function. In addition, CIOs must possess the communication skills necessary to translate IT investments, first into business concepts, and then into ROI. They must be skilled communicators, able to challenge disparate taxonomies by creating a common language for all audiences. Finally, they must be exceptional navigators -- capable of using the ITO to drive the enterprise forward externally, while concurrently elevating the role of the ITO internally."

As the demands of the role and the DNA of the executive evolve, so do the CIO's priorities. According to a recently completed META Group study titled "Top CIO Issues for 2005," value management heads the list of CIO concerns. Specifically, leading CIOs understand that CEOs and boards have been pressured to establish value for all corporate assets. Therefore, they see it as incumbent upon themselves, as leader of the ITO, to create, capture, and communicate the value of IT. Smart CIOs also view value communication as an effective, albeit unconventional, form of job security.

According to the study, value management processes have directly increased CIO tenure by enabling IT executives to demonstrate more tangible evidence that IT can grow the business in addition to simply supporting it. As a result, findings reveal that CIO tenure now averages 30 months and will rise to 40 months by mid-2006.

In addition to tenure, META Group believes value management can help with two other critical "T's": trust and transformation. Specifically, for ITOs struggling to establish trust, knowledgeable CIOs can administer well-understood SLAs, measure what matters to lines of business, and execute on detailed value management plans. In doing so, CIOs not only repair the fractures in the IT/business relationship, but also increase the perception of business's dependency on IT. CIOs can also use value management processes for more ambitious transformation initiatives by forming a common language, toolset, and methodology for innovation.

Value management is, however, far from the only CIO priority. The new breed of CIO is also more focused on critical business/IT alignment. To this end, study findings indicate an emphasis on agility and business relationship management. In fact, META Group predicts that by late 2006, 65% of CIOs will have relationship managers co-located with business. Moreover, by 2008, 85% of ITOs will exploit business relationship managers in concert with relationship, project, and value management processes. Advanced ITOs will incorporate change management, portfolio management, managerial accounting, and team building as key curriculum components for IT leaders.

"Today's CIOs view IT as the start of the race, not the finish," continued Poe. "They have a broader perspective of the enterprise and a more creative point of view on the value of IT within that organization. Perhaps more important, they have the market perspective that past generations of CIOs lacked. This perspective and focus on breakthrough business performance, as evidenced by the list of their priorities, will enable new-breed CIOs to assume their rightful place in the organization next to fellow C-suite peers."

Study findings revealed six top CIO concerns:

1. Value management

2. Business/IT alignment

3. Leadership

4. Portfolio management

5. Operations excellence

6. Process maturity

"The list of concerns is significant, not only in length but in substance," said CD Hobbs, META Group's president and COO. While new-breed CIOs have a deeply rooted 'ambition' gene, they will not be able to confront their priorities alone. At META Group, we have recognized both the opportunities and obstacles that stand before CIOs and for that reason will tackle the issue of breakthrough business performance at our METAmorphosis event this year."

"Without the tools and knowledge to support their heady agenda, this new crop of CIOs will face a steep road," concluded Hobbs. "At METAmorphosis, we hope to share insights that will make the path ahead a little easier to navigate."

About the Study

META Group's annual CIO study surveyed approximately 1,000 CIOs who attended META Group events. Fifty-one percent of CIO respondents are from non-US firms. Sixty-six percent of firms are global, having a presence in more than one country. Eleven percent of CIOs have budgets of more than $1 billion (USD). Twenty-five percent have budgets between $250 million and $1 billion. Thirty-nine percent have budgets between $50 million and $249 million. Eighteen percent have budgets between $10 million and $49.9 million. Finally, seven percent have budgets that are less than or equal to $10 million.

About METAmorphosis

METAmorphosis 2005 is META Group's 16th annual forum for meeting IT and business change. The theme of this year's event is "Breakthrough Business Performance," with a focus on sharing best practices for driving pervasive integration through IT innovation. METAmorphosis will offer two distinct executive programs to enhance the overall METAmorphosis experience.

The META Group Executive Leadership pre-program will focus on value. Executives will learn how to increase the integration of IT and business, and what to do now, regardless of where their enterprise is on its value journey. The sixth annual CIOnly(SM) program will focus on business integration issues. CIOs will learn how to build from the bottom up with an eye on the long-term goals of a business that bests its challengers through effective technologies and practices -- all within the context of intimate peer networking.

METAmorphosis 2005 locations include:

--METAmorphosis San Francisco - March 1-3; San Francisco, California 

--METAmorphosis Europe - April 26-28; Barcelona, Spain

--METAmorphosis Chicago - May 4-6; Chicago, Illinois

--METAmorphosis Dubai - May 9-10; Dubai, United Arab Emirates 

--METAmorphosis Australia - May 17-19; Sydney, Australia

--METAmorphosis South Africa - May 24-26; Johannesburg, South Africa

About META Group

META Group is a leading provider of information technology research, advisory services, and strategic consulting. Delivering objective and actionable guidance, META Group's experienced analysts and consultants are trusted advisors to IT and business executives around the world. Our unique collaborative models and dedicated customer service help clients be more efficient, effective, and timely in their use of IT to achieve their business goals. Visit metagroup.com for more details on our high-value approach.